Road Accident Fund (RAF) in Crisis: Court Rulings, Bailout Fears & Reform Proposals – May 2026 Update

The Road Accident Fund (RAF) in South Africa is facing one of its most turbulent periods yet. From landmark Supreme Court of Appeal (SCA) rulings that have overturned the fund’s claims process, to mounting fears of a government bailout and calls for a complete overhaul of the compensation system, May 2026 has brought a wave of critical developments that every South African road user, accident victim, and legal professional needs to understand.

Here is a comprehensive overview of the latest RAF news, key court rulings, financial concerns, and what it all means for claimants.

1. Landmark SCA Ruling: RAF’s Claims Process Declared Unlawful

In a unanimous judgment handed down on 30 April 2026, the Supreme Court of Appeal dismissed the RAF’s appeal against a High Court ruling that declared the fund’s revised RAF1 claim form and related Board Notices unconstitutional, unlawful, and invalid.

The central issue was whether the RAF and the Minister of Transport acted within their statutory and constitutional powers when they introduced more onerous requirements through Board Notices 271 and 302 of 2022. The SCA found that they did not.

Key findings of the ruling include:

• The RAF and the Minister of Transport exceeded their legal powers when introducing stricter requirements to the RAF1 claim form.
• The new requirements placed substantial impediments in the way of accident victims’ claims, undermining the very purpose of the RAF Act — to compensate road accident victims.
• The minister’s decision to approve and gazette the RAF1 form was found to be irrational and procedurally unfair, and was set aside under both the Promotion of Administrative Justice Act (PAJA) and the principle of legality.
• The RAF must revert to the older 2008 claim form as the valid standard until new regulations are lawfully introduced.

Transport Minister Barbara Creecy has been given six months to introduce a revised claims process that complies with legal and procedural requirements.

“The intention of tightening requirements may have been administrative efficiency, but the court has made it clear that this cannot come at the expense of access to justice.” — Kirstie Haslam, Partner at DSC Attorneys

2. Up to 600,000 Rejected Claims Must Be Revived

The SCA ordered that claimants whose submissions were previously rejected under the unlawful stricter requirements must be allowed to re-lodge their claims by 30 September 2026. This is a critical deadline for hundreds of thousands of South Africans.

According to RAF law expert and attorney Gert Nel, approximately 600,000 claims were rejected under the new claim form and will now need to be re-lodged and registered. The RAF has confirmed it will implement a comprehensive communication campaign in the coming weeks to inform affected claimants on how to resubmit their claims.

Acting CEO of the RAF, Radikwena Phora, stated that the fund welcomes the judgment as it provides clarity on the RAF1 Form matter, and that the RAF is committed to its full implementation.

What claimants should do:

• Issue proof that your original claim was submitted within three years of the accident.
• Submit as many relevant documents relating to the accident as possible when re-lodging.
• Act quickly — the deadline is 30 September 2026.
• Consult a qualified RAF attorney to protect your rights.

3. Government Bailout Fears: R500 Billion in Liabilities

The SCA ruling has dramatically worsened the RAF’s already precarious financial position, making a significant government bailout increasingly likely.

The fund is estimated to have approximately R500 billion in unqualified contingencies, a significant portion of which is attributable to the fund rejecting claims that complied with the RAF Act but not the now-overturned Board Notice and RAF1 Form.

Key financial facts:

• The 2026 Budget Review reported total liabilities of social security funds at R433.1 billion at the end of 2024/25, with the RAF accounting for 85.5% (R370.3 billion).
• The RAF’s liabilities are projected to increase from R369.7 billion in 2024/25 to R422.6 billion by 2027/28.
• RAF board chair Kenneth Brown previously warned that liabilities could increase by between R300 billion and R400 billion due to accounting standard changes.
• An estimated R4.8 billion in “phantom” claims — claims lodged in compliance with the Act but rejected under the unlawful RAF1 form — have secured default court judgments that are now immediately payable.
• The 2025 Medium-Term Budget Policy Statement described the RAF as a significant fiscal risk whose financial position is expected to deteriorate over the medium term.

Attorney Gert Nel warned: “Treasury will definitely have to get involved with a bailout to cover these additional expenses.”

4. Illegal Foreigners Can Now Claim from the RAF

In another significant April 2026 ruling, the SCA found that the RAF Act does not exclude undocumented illegal immigrants from claiming compensation for loss or damage suffered in road accidents. The RAF had previously attempted to exclude such claimants, but the court dismissed this appeal with costs.

Parliament’s Transport Committee Chairperson welcomed the ruling, stating: “The RAF funding is intended for victims of road accidents, a purpose for which no one should interfere based on nationality.”

5. SCOPA Inquiry and Governance Concerns

The Standing Committee on Public Accounts (SCOPA) is currently conducting an oversight inquiry into the affairs of the RAF. The inquiry has already uncovered almost R23 billion in excess payments over two years and is probing alleged corruption between judges and lawyers.

The RAF has had four CEOs in seven months, reflecting deep governance instability. Mandatory mediation of RAF cases has also been described as “a failure,” adding to the operational challenges facing the fund.

6. Signs of Recovery? Transport Committee Weighs In

Despite the dire financial picture, the Chairperson of the Portfolio Committee on Transport, Mr Donald Selamolela, stated in February 2026 that the RAF is “on the road to recovery,” with work happening to improve governance and stabilise operations.

Deputy Minister of Transport Mkhuleko Hlengwa likened the work of reforming the RAF to “fixing an aeroplane while airborne,” acknowledging the complexity of the task while reaffirming that reform remains a priority.

7. Experts Call for a Hybrid Compensation Model

The Actuarial Society of South Africa (ASSA) has released a major research paper calling for a complete overhaul of the road accident compensation system. The study, released in April 2026, concludes that none of the current systems — the RAF, the proposed Road Accident Benefit Scheme (RABS), or compulsory third-party insurance — are viable on their own.

ASSA recommends a hybrid solution that combines elements of all three systems. One proposed model would include:

• Basic no-fault benefits for medical care and rehabilitation.
• Fault-based liability insurance for additional damages.
• Delivery through a public-private partnership involving the current RAF and private insurers, under strong regulatory oversight.

Actuary George Schwalb noted: “We conclude that none of these general systems are viable on their own, but that we do need a hybrid solution.”

South Africa’s roads remain among the most dangerous in the world, with more than 11,000 lives lost in road accidents in 2025 alone, making a sustainable and fair compensation system more urgent than ever.

What This Means for RAF Claimants in 2026

If you or a loved one has been involved in a road accident in South Africa, here is what you need to know right now:

1. If your claim was previously rejected due to the new RAF1 form requirements, you have until 30 September 2026 to re-lodge your claim. Act immediately.
2. If you have a default judgment against the RAF, consult your attorney about enforcing payment — these are now immediately payable.
3. New claims should be submitted using the older, legally valid 2008 claim form until a new form is lawfully introduced.
4. All road users — including foreign nationals — are entitled to claim compensation from the RAF for injuries sustained in road accidents.
5. The RAF’s financial crisis means payment delays are likely to continue. Legal representation is strongly advised to protect your interests.

Conclusion: A Fund at a Crossroads

The Road Accident Fund is at a critical crossroads. A series of damaging court rulings, a potential R500 billion liability crisis, governance instability, and growing calls for systemic reform paint a picture of an institution under severe strain. Yet, for the hundreds of thousands of South Africans who depend on the RAF for compensation after life-altering road accidents, the stakes could not be higher.

The coming months — particularly the September 2026 deadline for re-lodging rejected claims and the six-month window for the Minister of Transport to introduce a revised claims process — will be pivotal in determining the future of road accident compensation in South Africa.

Stay informed and consult a qualified RAF attorney to ensure your rights are protected.

Sources: Moneyweb, TopAuto, Eyewitness News (EWN), IOL, Africa24TV, Parliament of South Africa, Supreme Court of Appeal